Markets

SEBI tightens settlement regulations

PTI Jaipur | Updated on January 12, 2018 Published on January 14, 2017


SEBI will provide incentives to defaulters coming on their own to settle cases before start of enforcement action while excessive delays in filing of settlement applications would be liable for higher charges.

In this regard, the board of SEBI (Securities and Exchange Board of India), during its meeting here today, approved various amendments to existing norms for settlement of administrative and civil proceedings.

The markets watchdog said the amendments have been approved in order to streamline and strengthen the settlement process.

With the amendments, SEBI would have power to charge interest in case of excessive delays in filing of applications or payment of settlement amount apart from providing incentive for defaulters to come “voluntarily on their own, before initiation of investigation or enforcement action“.

The amended norms would also pave the way for settlement notice before issuance of a formal show cause notice, except those that are excluded from settlement.

Among others, re-application of rejected or withdrawn applications in deserving cases, subject to payment of additional fees and interest would be permitted.

According to a release issued after the board meeting, situations when joint and several liability is taken into account for determining settlement amount would be considered under the revised norms.

In this regard, SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2014 would be amended.

As part of efforts to further empower stock exchanges, SEBI board has decided to allow bourses penalise listed companies in case they violate ICDR (Issue of Capital and Disclosure Requirements) Regulations.

With these changes, stock exchanges would have power to enable actions such as imposition of fines and suspension of trading.

At present, these provisions are available for exchanges only under the SEBI LODR (Listing Obligations and Disclosure Requirements) Regulations.

ICDR norms pertain to companies raising funds through public, rights, preferential or bonus issue of securities.

“This will reduce cost of undertaking adjudication/ quasi-judicial actions in case of minor violations for the listed entities,” the release said.

SEBI would issue appropriate guidelines providing for standard operating procedure in this respect.

Published on January 14, 2017

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
null
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.